While the concept of Bitcoin and cryptocurrencies has been around for some time now, it’s only in recent years that the idea took off. The first crypto was introduced to the public by Satoshi Nakamoto in 2008 in a white paper detailing the electronic cash system.
Bitcoin works through peer-to-peer transactions, which are verified through the blockchain. It requires proof-of-work that’s recorded in a public ledger to avoid double-spending.
If you’re a bit hesitant about cryptocurrencies, here are a few reasons why people are investing in it and why you should too:
1) Bitcoin is the Leading Cryptocurrency of the Future
Since Bitcoin was technically the first cryptocurrency that gained public usage, it has positioned itself as a leader in the industry. Even if it seems as if it’s too late now to invest in this digital asset, especially with the massive wins it got in 2017, experts believe that BTC will have another bull run and its value will soar to as high as 100,000 USD.
Emerging altcoins such as Ethereum, Litecoin, and Ripple are also going mainstream, but they haven’t achieved Bitcoin’s cult following yet. BTC continues to be the most recognizable crypto. It has garnered a lot of investors and gained the most visibility as a result.
2) Straightforward Ways to Earn
You can earn Bitcoins through mining, which requires your computer to solve a complex mathematical problem. After your PC completes the challenge, you’ll be rewarded with the cryptocurrency. However, this can take a long time since the equation requires high computational power.
Another way to acquire this electronic cash is through trading. Lots of platforms have been developed to allow users to convert fiat or real-world money into Bitcoins and grow these digital assets by buying or selling during optimal times, similar to traditional stock investing.
You can even go for automated Bitcoin trading through platforms such as Bitcoin Revolution. This passive method allows you to enjoy the perks of acquiring more digital assets without having to monitor the market regularly. You just configure your settings, and the smart robots will calculate when is the best time to buy or sell the cryptocurrency based on the information you put in, as well as current trends.
Other Bitcoin trading strategies include:
- Day Trading – With this strategy, you should look out for short-term opportunities and purchase BTC when it’s at its lowest price for the day. You then sell it at the highest possible value at the end of the day.
- Scalping – Scalping is the more aggressive counterpart to day trading since it involves making frequent trades in the same day based on slight price movements. You’ll get continuous but smaller profits.
- Swing Trading – This method requires an analysis of trends and predicting when the next low and high will come. With this, you can ride the market momentum to ensure that you get the best deal out of the venture.
3) High Adoption Rate
The decentralized nature of cryptocurrencies supports and supplements the rapid globalization brought about by technological advancements. Leading brands are taking advantage of this factor by accepting Bitcoin as payment.
Soon, cryptocurrencies will become a standard method used for exchanging goods and services. Withdrawing BTC will be more convenient as well since the Bitcoin ATM industry may see significant growth before the year 2023.
Currently, these are some of the large companies that accept payments in Bitcoins:
- Wikipedia – The open-source digital encyclopedia allows users to donate to the platform through BitPay, a third-party payment solutions provider.
- Microsoft – You can top up your account with the software company through Bitcoins.
- Expedia – The travel technology company partnered with Coinbase to accept BTC payments. However, the corporation did set strict regulations for this payment method, such as the finality of transactions once initiated.
- Overstock – The American digital retailer also enlisted the services of Coinbase to process Bitcoin payments for online orders.
- Playboy – Playboy TV introduced an alternative payment option that enables customers to view exclusive adult content through cryptocurrencies like Bitcoin.
- Virgin Galactic – Sir Richard Branson gives you the opportunity to travel to space and pay for the trip using Bitcoins.
- Namecheap – The domain name registration company was one of the pioneers in accepting Bitcoins as payment because their users requested it.
- CheapAir – The online travel agency initially processed Bitcoin payments through Coinbase but has since changed to BTCPayServer.
- The Pirate Bay – The entertainment media and software index has accepted Bitcoin payments and donations since 2013.
- 4Chan – 4Chan, an imageboard website, has long been a favorite of the fintech industry. You can buy a 4Chan pass with Bitcoin, Bitcoin Cash, Ethereum, and Litecoin.
- Amazon – While you still can’t pay Amazon using cryptocurrencies directly, you can connect your digital wallets to the platform. You can also buy gift cards for the e-commerce site through Gyft, which also offers gift cards for Starbucks and iTunes.
4) More Cryptocurrency Regulations
As more and more brands accept Bitcoin as payment, the governments of different countries have established regulations to ensure that the cryptocurrency isn’t being used for scams, which reduce the allure of investments in this digital asset.
While it may seem as if government intervention contradicts the decentralized nature of cryptos, projects like BAKKT and Libra attempt to stabilize cryptocurrencies without sacrificing its appealing characteristics. These projects are backed by major corporations, which lend credibility to their platforms.
5) Bitcoin History Shows Its Reliability and Scalability
Bitcoin’s existence has shown its reliability and scalability as a medium of exchange. Its last significant outage happened way back in 2013, which saw the blockchain malfunction because of incompatible software versions. The issue was remedied quickly, though, and the cryptocurrency hasn’t experienced major glitches since. Operations have been reliable 24 hours a day, seven days a week.
Bitcoin continues to be at the forefront of the cryptocurrency revolution. More and more people are investing in this digital asset for the future. You can earn it through mining or trading, with the latter being more manageable by people who do not have considerable computational resources to spare. A lot of major brands have also started to adopt it as a payment method, and more companies may follow suit given Bitcoin’s history of reliability, as well as scalability.